Evidence of Savings for LTV Mortgage

D

DerKaiser

Registered User
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Could anyone tell me how strict the banks are on this i.e. will they only allow drawdown where they have evidence of 100% of the deposit?
 
Under the Money Laundering Act the lender has to satisfy themselves to the amount and origin of the deposit funds. Bank/building society/credit union statements, share certificates and/or a gift letter (delete as appropriate!) are required.

Sarah

www.mortgagesoverseas.com
 
ClubMan said:
What do you mean by "LTV mortgage"?
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Loan to Value - the amount of the loan in relation to the value of your house. EG House value 250K v's mortgage 250K = 100% LTV or house value 500K V's mortgage E250k = 50% ltv etc. !!
 
Take it up with the NIB marketing team! To rephrase:
1) Do banks require evidence of a deposit amount before drawdown of funds is allowed on non 100% mortgages?
2) Are banks stricter on this where a special interest rate is given based on LTV's below certain thresholds?
 
DerKaiser said:
Take it up with the NIB marketing team! To rephrase:
1) Do banks require evidence of a deposit amount before drawdown of funds is allowed on non 100% mortgages?
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Yes - as SarahW said in post #4.

DerKaiser said:
2) Are banks stricter on this where a special interest rate is given based on LTV's below certain thresholds?
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Since you have to provide the evidence in the first place, I'm not sure what "stricter" would entail. The rate is offered on the premise that you're a lower risk customer. This means they will want to verify that the LTV being declared is reasonable, and that the source of other funds isn't from borrowings where another lender could secure a lien on the house.
 
Well stricter could mean that the bank ask for evidence of the Deposit before approval is even given. Also is it possible for people just to answer a question without trying to pick holes in the question? Just let someone who has the answer reply
 
"Also is it possible for people just to answer a question without trying to pick holes in the question? "

No - that would be no fun. Anyway, you've been around here long enough to know the score. Ask a question with an underlying hint of something and it will be picked up, shaken to within an inch of its life and tossed back having been completely (although not always correctly) dissected.

mf
 
My bank asked for proof of funds before I got the loan offer. However they accepted an Internet banking printout and a declaration that the remaining balance was to be a gift.

Before the actual draw-down they wanted an original bank statement showing savings and a gift letter for any remaining balance.
 
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